ozi_angel_1

Can anyone tell me how much money can be given to another person before anyone is having to pay ' gift tax' in Australia. Both parties are in Australia and the gift is from Father to Son.ThanksGreat Answers, thank you both. I've checked ATO website..thats like hunting for a pin in a haystack..lol. The gift is not property or collectable, its a check for $10,000. The father is a pensioner. Would that be taxable?

slavr

Hi,The best place to go is the Australian Taxation Office website.Try ato dot gov dot au.Alternatively give the office a call. They are extremely reasonable to deal with and will give you straight answers without fuss.I hope this helps.Slav

Trolley1949

Gift tax is a tricky thing in Australia. We have what we call the Capital Gain Tax (CGT). Under one of its rules, when a taxpayer disposes his or her asset to another person, CGT event happens and CGT may be payable. Your example regarding father and son would fall under this particular event. If the asset is a personal asset (asset that is used for personal use and enjoyment), the CGT will be disregarded if the asset was first acquired by the father for more than $10,000. If the asset is a collectable (such as artworks), the CGT will be disregarded if the asset was first acquired by the father for more than $500.If there is no money exchanged hands, the rule will deem the father to have receive proceeds equivalent to "market value" from the son. Any capital gain can be offset against capital loss. Any net figure can be discounted by 50% if held for longer than 12 months. Then the amount is added to the father's other taxable income and is taxed at his marginal tax rate.That's the rule. In reality, when a father giving, say a very precious ring, to the son, it is very unlikely that the father would declare the disposal in his tax return.